Sometimes stocks are undervalued for a reason and the reason is not readily apparent to someone not in the know. Other times stocks become undervalued because the market in general is undervalued. In todays market some stocks in the later category might be found. But there is the possibility that the world is heading into a recession and these stocks may become much more undervalued next year.
The PEG ratio is often used to try to uncover undervalued stocks. That is the ratio of PE to growth rate. In theory the lower the ratio the more undervalued the stock. Warren Buffet likes companies that have potential that has not been realized. That implies poor management. He is in a position to take over the company and change the management. You perhaps are not.
I ran a screen on Yahoo of companies paying 3% to 5% dividend with a PEG between .5 and 1.0 and a market capitalization of greater than a billion dollars. 21 companies were selected. Quite a few of them large banks. Perhaps what you are looking for is among those selected.
2006-06-20 01:26:15
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answer #1
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answered by Anonymous
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Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/e3f14
2015-01-24 23:58:59
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answer #2
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answered by Anonymous
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2014-09-22 06:09:37
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answer #3
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answered by Anonymous
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Yahoo! Answer.
seriously, Yahoo! stock is undervalued now.
2006-06-19 18:02:35
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answer #4
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answered by plasmaisnoturs 3
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most easy method -look at PE. Some good stocks which their PE is vy high, may have decline lately, so check their PE. But u need to check their fundamental - profitability, ROE, cos some low PE stocks dun have much prospects.
2006-06-19 18:41:47
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answer #5
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answered by Raining Ice 1
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real estate. Gold is doing good, but will keep going up.
2006-06-19 18:04:32
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answer #6
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answered by Rockstar 6
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beans just kidden the sprit
2006-06-19 18:02:49
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answer #7
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answered by servant of AR-RAHIM mostMERCIFUL 3
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